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WB Raises South Africa Growth Forecast

WB Raises South Africa Growth ForecastWB Raises South Africa Growth Forecast

The World Bank raised its forecasts for the South African economy on Tuesday but warned that growth potential would remain weak without concerted efforts to reduce inequality and stimulate competition, Reuters reported. The World Bank now sees gross domestic product growing by 1.4% this year, up from its September forecast of 1.1%, supported by improved business and consumer confidence after Cyril Ramaphosa replaced Jacob Zuma as head of state in February. But South Africa will struggle to raise growth much beyond 2% without policy interventions to improve skills among the poor and tackle monopolies, it said. “There has been a smooth and seamless political transition, which is important. And there have been gains in the trust of people and businesses,” said Paul Noumba Um, World Bank country director for South Africa. “That said, inequality, poverty and unemployment are big challenges. South Africa is the most unequal economy in the world today,” he told a news conference in Johannesburg.

 

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